QatarEnergy, the state-owned energy company of Qatar, recently announced a 27-year gas supply agreement with Sinopec, marking its second significant deal with the Chinese corporation. According to the agreement, Doha will provide three million tonnes of gas annually to Sinopec.

The deal includes granting Sinopec a five percent interest in a joint venture as part of Qatar’s North Field gas expansion project, a groundbreaking initiative unveiled last month. This expansion project encompasses the world’s largest natural gas reserves, stretching across the Gulf region and into Iranian territory.

Under this arrangement, QatarEnergy is set to form a joint venture with a six million tonnes per year capacity in the North Field South’s second phase, an enterprise established through the deal inked in Shanghai.

The Asian market, led by nations like China, Japan, and South Korea, has historically been a primary market for Qatar’s gas. However, with increased demand from European countries, the significance of Qatar’s gas exports has broadened, especially since Russia’s incursion into Ukraine.

Qatar’s initial collaboration with Sinopec was followed by a series of comparable 27-year agreements with major global energy players such as France’s Total, Britain’s Shell, Italy’s Eni, and the China National Petroleum Corporation. Notably, US companies ConocoPhillips and ExxonMobil have also joined in partnerships for this expansion.

As a leading LNG producer globally, Qatar, alongside the United States, Australia, and Russia, plays a pivotal role in the global energy landscape. QatarEnergy estimates that the North Field holds approximately 10 percent of the world’s known natural gas reserves.